Construction Estimating Process

Study Notes

Estimating

Overview

Estimating is the process of determining the cost and time requirements for a project. It's an essential part of the project management process, and it involves accurately forecasting the resources, materials, and labor required to complete a project. The goal is to create a realistic and accurate estimate that can be used to bid on a project and to manage the project's budget and schedule.

Keys to Accurate Estimating

There are several key factors that can help ensure accurate estimating:

Five keys to estimating: The Project Management Institute (PMI) outlines five keys to estimating: reconciling project objectives and estimates, handling estimates that exceed budgets, eliminating "sand bagging," determining needs before costs, and ensuring takeoffs are detailed and precise.
Understanding the project: An estimator must understand the systems being used for each of the window or curtain wall types included in a set of plans, and what materials must be included in the material takeoffs. Additionally, they must determine miscellaneous needs, such as packaging and shipping materials if a project is out of town and the job is fabricated in a facility.
Determining needs before costs: An estimator must understand the systems being used for each of the window or curtain wall types included in a set of plans, and what materials must be included in the material takeoffs. Additionally, they must determine miscellaneous needs, such as packaging and shipping materials if a project is out of town and the job is fabricated in a facility.
Ensuring takeoffs are detailed and precise: Material takeoffs must be accurate to ensure that the bid is not too low, causing job costs to exceed the estimated costs, or too high, causing the competitor to win the job with a lower bid.
Tracking price changes: Prices change, so an estimator must keep on top of market conditions to correctly determine material costs and the pay climate in order to identify accurate rates for laborers and craftsmen, making sure to factor in all federal and state payroll costs as well.
Using a checklist: A checklist helps an estimator keep track of all the details and allows them to add items as they are thought of or modified to better fit the project.

Construction Estimating

In the context of construction projects, estimating is the process of assessing all the costs of a construction project during the preconstruction phase. These costs include direct costs, indirect costs, overhead costs, and a profit margin for the general contractor. The purpose of construction estimating is to create a construction estimate, a document that general contractors use when bidding for construction projects.

Construction Estimate

A construction estimate forecasts how much it'll cost to build the structure in your project plan. It's a crucial step taken at the early stages of any construction project management process.

When to Use a Construction Estimate

A construction estimate is used throughout the early stages of a project and can be sketched out when the project is just an idea. As the construction planning progresses, there are opportunities to draw more accurate estimates from the data accumulating around resources, scheduling, etc..

Construction Estimating Process

The construction estimating process involves identifying project tasks, writing a scope of work, identifying the project resource requirements, making a material takeoff and bill of quantities, and estimating costs and creating a construction estimate.

Key Components of a Construction Estimate

Most construction estimates are done by the project estimator, but they can also be created by the project manager, another manager, or someone else on the project. The size of the project and the makeup of the organization determine who creates the estimate.

Estimating Software

Construction estimating software can help streamline the process of creating a construction estimate by automating certain tasks. However, a skilled estimator is still generally required for the process. Software tends to help with calculation and tabulation, but a talented estimator has knowledge of construction projects, prices, processes, and productivity rates that dictate which costs are entered into the software.

Description

Learn about the process of estimating costs for construction projects, including key components, construction estimates, and the role of construction estimating software. This quiz covers essential aspects of accurate estimating and the importance of creating detailed construction estimates for bidding on and managing construction projects.